| IMPORTANT
UPDATE
The state has imposed a three-year aggregate cap on the conservation tax credit program for years 2011, 2012 and 2013 as a way to help address the state’s budget shortfall crisis. This went into effect on January 1, 2011 and will sunset on December 31, 2013. In May 2011, House Bill 11-1300 was signed into law which, among other things, changes the allocation of the three-year aggregate cap of $78 million. This means only $22 million in conservation tax credits will be issued by the Division of Real Estate (DRE) for 2011, $22 million for 2012 and $34 million for 2013, for an aggregate total of $78 million. DRE, which administers the tax credit cap program, anticipates the $22 million tax credit cap for 2012 will be met sometime in the summer. It is possible that the three-year aggregate tax credit cap of $78 million could also be met in 2012. The individual maximum credit has not changed and is still set at $375,000.
It is advisable to register early and indicate your intent to sell credits through our firm especially during the 2011, 2012 and 2013 cap years. You will be placed on our priority credit seller list when your registration form is received.
THE
PROCESS
Register with CTCT
by completing the CTCT 2012 Seller Registration
Form [click
here].
TAX CREDIT APPLICATION
& FEE
CTCT will assist you
in completing the application and pay
your $250 application fee as part of our
service. We will review and track your
tax credit application packet until you
are issued a tax credit certificate, which
is required before you can sell your tax
credit. DRE encourages donors working
with a tax credit broker to list the broker
as either the main or additional contact
on the application form in order to expedite
the process.
TAX
CREDIT CERTIFICATE
Once you have been issued a Tax Credit
Certificate by DRE, CTCT will work with
you, your land trust or governmental agency
and other conservation professionals to
obtain all of your donation documents.
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REVIEW OF
DONATION DOCUMENTS
CTCT will conduct a thorough due diligence review
of all of your donation documents to ensure
that your donation meets all state and federal
laws, regulations and notices. We will help
you make any required changes to your documents,
if needed.
TRANSFER PROCESS
Once CTCT has accepted your credit for transfer,
we will match you with a qualified credit buyer.
Both sellers and buyers execute CTCT’s
Agreement to Purchase/Sell. Transfers are completed
by delivering signed copies of the Agreement
and checks from the buyers to the sellers.
TAX FILING
PAPERWORK
After your credits are sold, we prepare the
required paperwork documenting the completed
transaction for both you and the buyers to file
with your Colorado state income tax returns.
This includes completing Department of Revenue
(DR) Form 1305 and help with completing Forms
DR 1303 and 1304.
GOING MARKET
RATE
You receive a percentage of the face value of
your credit based on "the market transfer
rate." The limited supply of tax credits
under the new cap program will affect the 2012
rate. Please check with us about the current
market rate.
CTCT credit
buyers are currently purchasing 2012 credits. Selling early can make a big difference
to you.
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